The work that early childhood educators do is important and they deserve to be paid appropriately. Beginning April 2024, the Department of Education, Culture and Employment implemented a new interim funding approach to increase funding to licensed programs.

The Department is working on the development of new Early Learning and Child Care Standards Regulations and Funding Regulations, which are necessary to implement a new certification process, wage grid and funding approach for programs. Those regulations are in development and anticipated to be ready for public review and feedback in the summer of 2024. Instead of waiting for implementation of the regulations, the Department has implemented temporary changes to the provision of funding to licensed programs, ensuring that licensed programs benefit from increased funding under the new funding approach, beginning in April 2024 rather than summer 2024.

What changed?

The previous funding model for licensed early learning and child care programs, known as the Early Childhood Program Operating Subsidy, was based on daily attendance. This meant that any time the child care provider was closed (due to illness, vacation, etc.), a child was away (vacations, on the land), or when a child was absent for more then five days due to illness, the provider received less funding.

The new model is not attendance based. It is based on child enrollment and intends to provide operators with stable and predictable funding that provides more flexibility when they may be closed or when a child is absent.

For Family Day Homes

Operators of family day homes will receive funding for the Child Care Fee Reduction Subsidy, the Family Day Home Operating Funding, administration funding and Five Year Retention funding (if eligible). Funding will be provided in advance, and based on the new amounts that have been communicated to licensed programs. Licensed family day homes are now able to be closed for up to 20 days in a year before it affects their funding.

For Centre-Based Programs

We have created two new funding programs based on the type of child care space that allow more flexibility for centre-based child care providers. The new programs merge funding previously provided through the Early Childhood Program Operating Subsidy, Child Care Fee Reduction Subsidy, Sustainability Funding, and the transitional Retention Incentive.

• Dedicated Funding supports increased wages for early childhood educators who work directly with children in licensed center-based early learning and child care programs. The funding is provided to licenced programs to support wages for early childhood educators, supervisors and directors.
• Flexible Funding provides funding to licensed early learning and child care programs, empowering them to make program-level decisions that align with their unique needs.

Do licensed programs receive funding later than under the previous funding model?

No. The new funding mechanism provides funding to licensed programs earlier and more routinely, beginning this fiscal year.

• For example, under the previous funding mechanism, child care providers would typically receive Early Childhood Program (ECP) funding for April, May, and June payments in July, and Child Care Fee Reduction (CCFR) funding for April by April 7th. Moving forward, the department is reviewing the payment process to ensure that payments are received by operators the first business day of the month for the remainder of the fiscal year.

When will ECE make the payments to licensed programs?

The Department is reviewing the payment process to ensure that payments are received by operators the first business day of the month for the remainder of the fiscal year.

Were there delays in payments to licensed providers on April 2, 2024?

Payments for all licenced early learning and child care programs were processed by GNWT first thing on April 2. Any delay in programs receiving the payment in their bank account were due to the time it takes for funds to transfer between financial institutions, which can be different depending on which bank the program operator uses. Such delays are generally one to two days.

Do licensed programs need to do anything to receive this funding?

• Licensed programs do not have to sign a contribution agreement.
• Licensed programs do not have to submit an application form at this time. (An application may be required in the future. Any related information will be provided in the coming weeks.)

How do licensed programs receive this funding?

If you’re signed up for direct deposit, your funding payments will be automatically deposited into your account as usual; otherwise, a cheque will be mailed to the address the Department has on file.

After you receive funding, your Regional Early Childhood Coordinator will send you a payment document by Secure File Transfer (SFT). This new document will give you a detailed breakdown of the funding you received.

What reporting is required from licensed programs?

The first quarterly report will be due on July 5. The Department will provide more information about the reporting requirements in the coming weeks. Reporting for all previous funding provided from April 1, 2023 to March 31, 2024 will still be required according to the previous Early Childhood Program Operating Subsidy and Child Care Fee Reduction Subsidy funding timelines.

What do new regulations mean for centre-based programs for the wage grid and certification process?

Forthcoming new regulations are intended to support the implementation of a wage grid that will outline standards and pay levels for most centre-based early childhood educators across the territory, while considering cost of living differences between communities. They will also support the implementation of a certification process for individuals working with children in centre-based programs that will allow for targeted professional development opportunities for early childhood educators. The new regulations are anticipated to be ready for public review in summer 2024, and to come into effect following engagement.